Into jobs or into the classroom? The UK new deal for young people

Into jobs or into the classroom? The UK new deal for young people

Into jobs or into the classroom? The UK new deal for young people

The New Deal for Young People (NDYP) is a major active labour market policy aimed at getting long-term unemployed young people in the UK into jobs. In this paper we use duration analysis to examine whether the policy has raised the probabilities of exit from unemployment to employment, to education/training, to other benefits and to other destinations, at different durations of unemployment. We find NDYP to have boosted exit rates to all destinations for participants, i.e. it does help some young people out of unemployment and into work. The (previously unidentified) primary effect of NDYP, however, has been to shift large numbers of young people out of unemployment and into education and training. It is not yet clear whether these young people are subsequently more ‘employable’ as a result of the intervention.

youth, labour market, education

Economic Research Institute of Northern Ireland

McVicar, Duncan

2f910ef3-d22b-4f00-b95b-cc6312b653f6

Podivinsky, Jan M.

68b5a6e8-9d09-4a3e-97b2-4a9e4f1efbb9

Northern Ireland Economic Research Centre

1 April 2003

McVicar, Duncan

2f910ef3-d22b-4f00-b95b-cc6312b653f6

Podivinsky, Jan M.

68b5a6e8-9d09-4a3e-97b2-4a9e4f1efbb9

McVicar, Duncan and Podivinsky, Jan M.
,
Northern Ireland Economic Research Centre(2003)Into jobs or into the classroom? The UK new deal for young people
Belfast, Northern Ireland.
Economic Research Institute of Northern Ireland57pp.
(Working Paper Series 80)

Record type:
Monograph
(Working Paper)

Abstract

The New Deal for Young People (NDYP) is a major active labour market policy aimed at getting long-term unemployed young people in the UK into jobs. In this paper we use duration analysis to examine whether the policy has raised the probabilities of exit from unemployment to employment, to education/training, to other benefits and to other destinations, at different durations of unemployment. We find NDYP to have boosted exit rates to all destinations for participants, i.e. it does help some young people out of unemployment and into work. The (previously unidentified) primary effect of NDYP, however, has been to shift large numbers of young people out of unemployment and into education and training. It is not yet clear whether these young people are subsequently more ‘employable’ as a result of the intervention.